zncc president binha.jpgIndustrialists are calling on banks to extend loan repayment conditions to five years from the current short term duration of 12 months in order to restore business confidence within the economy.

According to proposals by business representative organisations for consideration in the 2012 national budget, the extension of loan repayment periods from the current short term to longer durations will enable companies to fully restore productivity.

The Zimbabwe National Chamber of Commerce (ZNCC) President, Mr Oswell Binha said companies are failing to recapitalise due to their failure to access cheap loans from the local financial sector.

“We are failing to get cheaper loans and this is a cause for concern,” Mr Binha said.

The Zimbabwe Farmers Union (ZFU) President, Mr Berean Mukwende said it is in the interest of economic revival that the provision of longer term loans will facilitate growth of productive sectors.

“We are not happy with the current short term durations in the market and for the revival of key economic sectors, banks should extend loan repayment durations,” said Mr Mukwende.

Local banks are being criticised by stakeholders for failing to provide cheaper loans in line with the prevailing stable macro economic conditions.

However, the Bankers Association of Zimbabwe recently revealed that the tight lending conditions are due to low income inflows on the back of depressed deposits and savings.